Full Breakdown
D.C. Attorney General Utilizes RICO Law Against Landlords for Tenant Mistreatment
2/13/2026, 6:24:08 AM
Legal Action Against the Razjooyan Family
On February 12, 2026, Washington, D.C. Attorney General Brian Schwalb announced a groundbreaking lawsuit against Ali “Sam” Razjooyan, his brother Eimon “Ray” Razjooyan, and their mother Houri Razjooyan, utilizing the Racketeer Influenced and Corrupt Organizations Act (RICO). This marks the first instance of D.C. employing this statute in a housing context. The lawsuit alleges that the Razjooyans operated a complex scheme involving 70 primarily rent-controlled properties, where they provided unsuitable living conditions for tenants while defrauding lenders and exploiting affordable housing subsidy programs.
Schwalb described the Razjooyans' operation as a “sprawling illegal enterprise,” characterized by a network of shell LLCs, unlicensed property management, and straw purchasers designed to obscure true ownership and property conditions. He emphasized the dire state of affordable housing in D.C., stating that for every 100 extremely low-income renters, only 32 affordable homes are available.
Allegations of Fraud and Tenant Abuse
The lawsuit accuses the Razjooyans of misleading lenders with false renovation promises, resulting in deteriorating living conditions for tenants. Reports indicate that many residents faced severe issues, including infestations, lack of heat, and uninhabitable apartments. Schwalb noted that the conditions exacerbated the city’s affordable housing crisis, with some tenants living in properties plagued by rodent and cockroach infestations, as well as standing water in basements.
The legal action seeks restitution for affected tenants and aims to prevent the Razjooyans from conducting business in the District. Schwalb stated that the RICO statute enables his office to target the foundational fraud underlying the Razjooyans' operations, rather than merely addressing individual properties.
Criticism from the Razjooyan Family
In response to the allegations, Ali Razjooyan expressed strong disagreement with the claims, asserting that they have not been proven and should be resolved in court rather than through public discourse. He criticized the Attorney General's approach, suggesting it imposes undue costs on property owners without offering meaningful solutions to the housing crisis.
Expert Perspectives on the Case
Palmer Heenan, a civil rights attorney and housing expert, described the use of RICO in this context as “novel and important.” He highlighted that the statute allows for a deeper investigation into the complex ownership structures often involved in real estate, facilitating a more effective pursuit of justice for tenants facing poor living conditions.
Conclusion and Next Steps
The lawsuit represents a significant step in addressing tenant mistreatment in Washington, D.C., and may set a precedent for future legal actions against landlords exploiting vulnerable populations. As the case progresses, it will be crucial to monitor the developments in court and the potential implications for housing policy in the District.
